The value of Bordon leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the unexpired lease term is less than eighty years
Leasehold premises in Bordon with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Bordon,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bordon valuers.
Last year Hunter, started to get near to the 80-year threshold with the lease on his studio flat in Bordon. Having bought his property 19 years previously, the lease term was of minimal bearing. by good luck, he realised he would imminently be paying an escalated premium for a lease extension. Hunter arranged for a lease extension at the eleventh hour in April. Hunter and the freeholder eventually settled on a premium of £5,000 . If he had missed the deadline, the price would have become more exhorbitant by a minimum £1,050.
Mr and Mrs. O Roux bought a garden apartment in Bordon in October 2005. The question was if we could estimate the premium could be for a ninety year extension to my lease. Similar flats in Bordon with 100 year plus lease were valued about £218,000. The average amount of ground rent was £45 collected per annum. The lease termination date was in 2088. Given that there were 63 years left we estimated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 plus expenses.
Last Spring we were phoned by Dr Y Bernard , who acquired a studio flat in Bordon in April 2004. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative residencies in Bordon with an extended lease were worth £270,000. The average amount of ground rent was £55 collected quarterly. The lease termination date was in 2099. Having 74 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.